Fourth Quarter and Full Year 2024 Highlights
- Strong finish to the year led by solid execution and
accelerating improvement in operating trends in the fourth quarter,
providing momentum for 2025
- Full year 2024 revenue of $8.920
billion, up 11.2% year over year
- Net income(a) of $617.6
million, adjusted net income(b) of $1.239 billion, and adjusted EBITDA(b)
of $2.902 billion, up 15.0%, and
32.5% of revenue, up 100 basis points year over year
- Net cash provided by operating activities of $2.229 billion and adjusted free cash
flow(b) of $1.218
billion
- Record year of private company acquisitions of approximately
$750 million in annualized
revenue
Expectations for 2025
- Revenue in the range of $9.45
billion to $9.60
billion
- Net income of $1.186 billion
to $1.224 billion and adjusted
EBITDA(b) margin expansion of up to 80 basis points, or
33.3%
- Net cash provided by operating activities in the range of
$2.500 billion to $2.575 billion and adjusted free cash
flow(b) of between $1.300
billion and $1.350 billion, or
over $1.550 billion on a normalized
basis
- Ongoing acquisition-related dialogue with strong pipeline,
along with expectations for improving commodity-driven revenues,
position for high end of range or above
TORONTO, Feb. 12,
2025 /PRNewswire/ -- Waste Connections, Inc.
(TSX/NYSE: WCN) ("Waste Connections" or the "Company") today
announced its results for the fourth quarter of 2024 and outlook
for 2025.
"Q4 provided a solid finish to a year of extraordinary
accomplishments for Waste Connections both financially, with
double-digit growth in both revenue and adjusted
EBITDA(b), and operationally, with accelerating
improvements in employee engagement and retention, along with the
integration of record levels of private company acquisition
activity, which totaled approximately $750
million in annualized revenues in 2024," said Ronald J. Mittelstaedt, President and Chief
Executive Officer.
"Our differentiated results in 2024 include 100 basis points
adjusted EBITDA(b) margin expansion for industry-leading
margin of 32.5% led by 7% solid waste core price complemented by
outsized acquisition contribution," added Mr. Mittelstaedt.
"Most importantly, our continued focus on human capital resulted in
multi-year lows for employee turnover, now down over one thousand
basis points from 2022, setting up for continued outsized margin
expansion."
Mr. Mittelstaedt concluded, "We are extremely pleased by our
industry-leading results in 2024 driven by approximately 24,000
dedicated employees whose efforts truly set us apart as we
continued to execute on a proven playbook. We are well-positioned
for another year of outsized growth in 2025 from price-led organic
solid waste growth, with improving commodities and ongoing
acquisition activity positioning us at or above the high end of our
range of potential outcomes and normalized adjusted free cash
flow(b) in excess of $1.550 billion. With year-end leverage of
less than 2.7 times, the strength of our balance sheet continues to
provide tremendous optionality to fund outsized acquisition
activity and invest in sustainability-related projects, along with
an increasing return of capital to shareholders."
Q4 2024 Results
Revenue in the fourth quarter totaled $2.260 billion, up from $2.036 billion in the year ago period.
Operating loss was $199.2 million,
which included $601.6 million in
impairments primarily related to the early closure of a landfill
and adjustments to landfill closure and post-closure costs, and
$0.9 million from transaction-related
expenses. This compares to operating income of $224.5 million in the fourth quarter of 2023,
which included $172.5 million
primarily in impairments associated with adjustments to landfill
closure and post-closure costs and transaction-related
expenses. Net loss in the fourth quarter was $196.0 million, or $0.76 per share on a diluted basis of 258.8
million shares. In the year ago period, the Company reported
net income of $126.8 million, or
$0.49 per share on a diluted basis of
258.3 million shares.
Adjusted net income(b) in the fourth quarter was
$300.6 million, or $1.16 per diluted share, up from $285.5 million, or $1.11 per diluted share, in the prior year
period. Adjusted EBITDA(b) in the fourth quarter
was $731.9 million, as compared to
$656.0 million in the prior year
period. Adjusted net income, adjusted net income per diluted
share and adjusted EBITDA, all non-GAAP measures, primarily exclude
impairments and transaction-related items, as reflected in the
detailed reconciliations in the attached tables.
Full Year 2024 Results
For the year ended December 31,
2024, revenue was $8.920
billion, up from $8.022
billion in the year ago period. Operating income was
$1.068 billion, which included
$613.0 million in impairments
primarily related to the early closure of a landfill and closure
and post-closure costs, $26.1 million
in transaction-related expenses and $1.6
million in fair value changes to certain equity
awards. In the year ago period, operating income was
$1.236 billion, which included
$263.8 million primarily from
impairments and other operating items attributable to landfill
closure and post-closure costs, transaction-related expenses and
executive separation costs.
Net income for the year ended December
31, 2024 was $617.6 million,
or $2.39 per share on a diluted basis
of 258.7 million shares. In the year ago period, the Company
reported net income of $762.8
million, or $2.95 per share on
a diluted basis of 258.1 million shares.
Adjusted net income(b) for the year ended
December 31, 2024 was $1.239 billion, or $4.79 per diluted share, as compared to
$1.081 billion, or $4.19 per diluted share, in the year ago period.
Adjusted EBITDA(b) for the year ended December 31, 2024 was $2.902 billion, up from $2.523 billion in the prior year period.
2025 Outlook
Waste Connections also announced its outlook for 2025, which
assumes no change in the current economic environment. The
Company's outlook excludes expensing of transaction-related
items. The outlook provided below is forward looking, and
actual results may differ materially depending on risks and
uncertainties detailed at the end of this release and in our
periodic filings with the U.S. Securities and Exchange Commission
and the securities commissions or similar regulatory authorities in
Canada. Certain components of the
outlook for 2025 are subject to quarterly fluctuations. See
reconciliations in the attached tables.
- Revenue is estimated between $9.450
billion and $9.600
billion;
- Net income is estimated between $1.186
billion and $1.224
billion;
- Adjusted EBITDA(b) margin is estimated between 33.0%
and 33.3% of revenue, up 50 to 80 basis points year over year;
- Net cash provided by operating activities is estimated between
$2.500 billion and $2.575 billion;
- Capital expenditures are estimated to be between $1.200 billion and $1.225
billion, including $100
million to $150 million for
RNG facilities; and
- Adjusted free cash flow(b) is estimated between
$1.300 billion and $1.350 billion.
|
----------------------------------------------------------------------------------------------------------------------------------------------------
|
|
(a)
|
All references to
"Net income" refer to the financial statement line item "Net income
attributable to Waste Connections".
|
|
(b)
|
A non-GAAP measure;
see accompanying Non-GAAP Reconciliation Schedule.
|
Q4 2024 Earnings Conference Call
Waste Connections will be hosting a conference call related to
fourth quarter earnings on February
13th at 8:30 A.M. Eastern
Time. A live audio webcast of the conference call can
be accessed by visiting investors.wasteconnections.com and
selecting "News & Events" from the website menu. Alternatively,
conference call participants can preregister by clicking
here. Registered participants will receive dial-in
instructions and a personalized code for entry to the conference
call. A replay of the conference call will be available until
February 20, 2025, by calling
877-344-7529 (within North
America) or 412-317-0088 (international) and entering
Passcode #2431085.
Waste Connections will be filing a Form 8-K on EDGAR and on
SEDAR (as an "Other" document) prior to markets opening on
February 13th, providing
the Company's first quarter 2025 outlook for revenue and adjusted
EBITDA(b).
About Waste Connections
Waste Connections (wasteconnections.com) is an integrated solid
waste services company that provides non-hazardous waste
collection, transfer and disposal services, including by rail,
along with resource recovery primarily through recycling and
renewable fuels generation. The Company serves approximately nine
million residential, commercial and industrial customers in mostly
exclusive and secondary markets across 46 states in the U.S. and
six provinces in Canada. Waste
Connections also provides non-hazardous oilfield waste treatment,
recovery and disposal services in several basins across the U.S.
and Canada, as well as intermodal
services for the movement of cargo and solid waste containers in
the Pacific Northwest. Waste Connections views its Environmental,
Social and Governance ("ESG") efforts as integral to its business,
with initiatives consistent with its objective of long-term value
creation and focused on reducing emissions, increasing resource
recovery of both recyclable commodities and clean energy fuels,
reducing reliance on off-site disposal for landfill leachate,
further improving safety and enhancing employee engagement. Visit
wasteconnections.com/sustainability for more information and
updates on our progress towards targeted achievement.
Safe Harbor and Forward-Looking Information
This press release contains forward-looking statements within
the meaning of the safe harbor provisions of the U.S. Private
Securities Litigation Reform Act of 1995 ("PSLRA"), including
"forward-looking information" within the meaning of applicable
Canadian securities laws. These forward-looking statements are
neither historical facts nor assurances of future performance and
reflect Waste Connections' current beliefs and expectations
regarding future events and operating performance. These
forward-looking statements are often identified by the words "may,"
"might," "believes," "thinks," "expects," "estimate," "continue,"
"intends" or other words of similar meaning. All of the
forward-looking statements included in this press release are made
pursuant to the safe harbor provisions of the PSLRA and applicable
securities laws in Canada.
Forward-looking statements involve risks and uncertainties.
Forward-looking statements in this press release include, but are
not limited to, statements about expected 2025 financial results,
outlook and related assumptions, and potential acquisition
activity. Important factors that could cause actual results to
differ, possibly materially, from those indicated by the
forward-looking statements include, but are not limited to, risk
factors detailed from time to time in the Company's filings with
the SEC and the securities commissions or similar regulatory
authorities in Canada. You should not place undue reliance on
forward-looking statements, which speak only as of the date of this
press release. Waste Connections undertakes no obligation to
update the forward-looking statements set forth in this press
release, whether as a result of new information, future events, or
otherwise, unless required by applicable securities laws.
– financial tables attached –
|
CONTACT:
|
|
Mary Anne Whitney /
(832) 442-2253
|
Joe Box / (832)
442-2153
|
|
maryannew@wasteconnections.com
|
joe.box@wasteconnections.com
|
|
WASTE CONNECTIONS,
INC.
CONDENSED CONSOLIDATED
STATEMENTS OF NET INCOME
THREE AND TWELVE MONTHS
ENDED DECEMBER 31, 2023 AND 2024
(Unaudited)
(in thousands of U.S.
dollars, except share and per share amounts)
|
|
|
|
Three months ended
December 31,
|
|
Twelve months ended
December 31,
|
|
|
2023
|
|
2024
|
|
2023
|
|
2024
|
|
|
|
|
|
|
|
|
|
|
Revenues
|
|
$
|
2,035,609
|
|
$
|
2,260,283
|
|
$
|
8,021,951
|
|
$
|
8,919,591
|
|
Operating
expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of
operations
|
|
|
1,195,620
|
|
|
1,324,774
|
|
|
4,744,513
|
|
|
5,191,706
|
|
Selling, general and
administrative
|
|
|
192,752
|
|
|
211,335
|
|
|
799,119
|
|
|
883,445
|
|
Depreciation
|
|
|
213,291
|
|
|
261,609
|
|
|
845,638
|
|
|
974,001
|
|
Amortization of
intangibles
|
|
|
39,833
|
|
|
60,184
|
|
|
157,573
|
|
|
189,768
|
|
Impairments and other
operating items
|
|
|
169,595
|
|
|
601,570
|
|
|
238,796
|
|
|
613,012
|
|
Operating income
(loss)
|
|
|
224,518
|
|
|
(199,189)
|
|
|
1,236,312
|
|
|
1,067,659
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest
expense
|
|
|
(69,728)
|
|
|
(82,419)
|
|
|
(274,642)
|
|
|
(326,804)
|
|
Interest
income
|
|
|
2,464
|
|
|
2,215
|
|
|
9,350
|
|
|
11,607
|
|
Other income (expense),
net
|
|
|
4,135
|
|
|
(2,256)
|
|
|
12,481
|
|
|
10,471
|
|
Income (loss) before
income tax provision
|
|
|
161,389
|
|
|
(281,649)
|
|
|
983,501
|
|
|
762,933
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income tax (provision)
benefit
|
|
|
(34,760)
|
|
|
85,645
|
|
|
(220,675)
|
|
|
(146,363)
|
|
Net income
(loss)
|
|
|
126,629
|
|
|
(196,004)
|
|
|
762,826
|
|
|
616,570
|
|
Plus/(less): Net loss
(income) attributable to noncontrolling interests
|
|
|
124
|
|
|
-
|
|
|
(26)
|
|
|
1,003
|
|
Net income (loss)
attributable to Waste Connections
|
|
$
|
126,753
|
|
$
|
(196,004)
|
|
$
|
762,800
|
|
$
|
617,573
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings (loss) per
common share attributable to Waste Connections'
common
shareholders:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
$
|
0.49
|
|
$
|
(0.76)
|
|
$
|
2.96
|
|
$
|
2.39
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted
|
|
$
|
0.49
|
|
$
|
(0.76)
|
|
$
|
2.95
|
|
$
|
2.39
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shares used in the per
share calculations:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
257,636,137
|
|
|
258,043,117
|
|
|
257,551,129
|
|
|
257,965,871
|
|
Diluted
|
|
|
258,303,370
|
|
|
258,043,117
|
|
|
258,149,244
|
|
|
258,662,190
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash dividends per
common share
|
|
$
|
0.285
|
|
$
|
0.315
|
|
$
|
1.05
|
|
$
|
1.17
|
|
WASTE CONNECTIONS,
INC.
CONDENSED CONSOLIDATED
BALANCE SHEETS
(Unaudited)
(in thousands of U.S.
dollars, except share and per share amounts)
|
|
|
|
December 31,
2023
|
|
December 31,
2024
|
|
ASSETS
|
|
|
|
|
|
|
|
Current
assets:
|
|
|
|
|
|
|
|
Cash and
equivalents
|
|
$
|
78,399
|
|
$
|
62,366
|
|
Accounts receivable,
net of allowance for credit losses of $23,553 and
$25,730
at December 31, 2023
and 2024, respectively
|
|
|
856,953
|
|
|
935,027
|
|
Prepaid expenses and
other current assets
|
|
|
206,433
|
|
|
229,519
|
|
Total current
assets
|
|
|
1,141,785
|
|
|
1,226,912
|
|
|
|
|
|
|
|
|
Restricted
cash
|
|
|
105,639
|
|
|
135,807
|
|
Restricted
investments
|
|
|
70,350
|
|
|
78,126
|
|
Property and equipment,
net
|
|
|
7,228,331
|
|
|
8,035,929
|
|
Operating lease
right-of-use assets
|
|
|
261,782
|
|
|
308,198
|
|
Goodwill
|
|
|
7,404,400
|
|
|
7,950,406
|
|
Intangible assets,
net
|
|
|
1,603,541
|
|
|
1,991,619
|
|
Other assets,
net
|
|
|
100,048
|
|
|
90,812
|
|
Total
assets
|
|
$
|
17,915,876
|
|
$
|
19,817,809
|
|
LIABILITIES AND
EQUITY
|
|
|
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
|
|
|
Accounts
payable
|
|
$
|
642,455
|
|
$
|
637,371
|
|
Book
overdraft
|
|
|
14,855
|
|
|
14,628
|
|
Deferred
revenue
|
|
|
355,203
|
|
|
382,501
|
|
Accrued
liabilities
|
|
|
521,428
|
|
|
736,824
|
|
Current portion of
operating lease liabilities
|
|
|
32,533
|
|
|
40,490
|
|
Current portion of
contingent consideration
|
|
|
94,996
|
|
|
59,169
|
|
Current portion of
long-term debt and notes payable
|
|
|
26,462
|
|
|
7,851
|
|
Total current
liabilities
|
|
|
1,687,932
|
|
|
1,878,834
|
|
|
|
|
|
|
|
|
Long-term portion of
debt and notes payable
|
|
|
6,724,771
|
|
|
8,072,928
|
|
Long-term portion of
operating lease liabilities
|
|
|
238,440
|
|
|
272,107
|
|
Long-term portion of
contingent consideration
|
|
|
20,034
|
|
|
27,993
|
|
Deferred income
taxes
|
|
|
1,022,480
|
|
|
958,340
|
|
Other long-term
liabilities
|
|
|
524,438
|
|
|
747,253
|
|
Total
liabilities
|
|
|
10,218,095
|
|
|
11,957,455
|
|
Commitments and
contingencies
|
|
|
|
|
|
|
|
Equity:
|
|
|
|
|
|
|
|
Common shares:
257,659,921 shares issued and 257,600,479 shares outstanding
at
December 31, 2023;
258,067,487 shares issued and 258,019,389 shares
outstanding
at December 31,
2024
|
|
|
3,276,661
|
|
|
3,283,161
|
|
Additional paid-in
capital
|
|
|
284,284
|
|
|
325,928
|
|
Accumulated other
comprehensive loss
|
|
|
(9,826)
|
|
|
(205,740)
|
|
Treasury shares: 59,442
and 48,098 shares at December 31, 2023 and 2024,
respectively
|
|
|
-
|
|
|
-
|
|
Retained
earnings
|
|
|
4,141,690
|
|
|
4,457,005
|
|
Total Waste
Connections' equity
|
|
|
7,692,809
|
|
|
7,860,354
|
|
Noncontrolling interest
in subsidiaries
|
|
|
4,972
|
|
|
-
|
|
Total
equity
|
|
|
7,697,781
|
|
|
7,860,354
|
|
Total
liabilities and equity
|
|
$
|
17,915,876
|
|
$
|
19,817,809
|
|
WASTE CONNECTIONS,
INC.
CONDENSED CONSOLIDATED
STATEMENTS OF CASH FLOWS
TWELVE MONTHS ENDED
DECEMBER 31, 2023 AND 2024
(Unaudited)
(in thousands of U.S.
dollars)
|
|
|
|
Twelve
months ended December 31,
|
|
|
2023
|
|
2024
|
|
Cash flows from
operating activities:
|
|
|
|
|
|
|
|
Net income
|
|
$
|
762,826
|
|
$
|
616,570
|
|
Adjustments to
reconcile net income to net cash provided by operating
activities:
|
|
|
|
|
|
|
|
Loss from disposal of
assets, impairments and other
|
|
|
38,877
|
|
|
122,641
|
|
Adjustment to closure
and post-closure liabilities
|
|
|
159,547
|
|
|
480,786
|
|
Depreciation
|
|
|
845,638
|
|
|
974,001
|
|
Amortization of
intangibles
|
|
|
157,573
|
|
|
189,768
|
|
Deferred income taxes,
net of acquisitions
|
|
|
6,329
|
|
|
(57,285)
|
|
Current period
provision for expected credit losses
|
|
|
17,430
|
|
|
20,243
|
|
Amortization of debt
issuance costs
|
|
|
6,483
|
|
|
10,007
|
|
Share-based
compensation
|
|
|
70,436
|
|
|
77,885
|
|
Interest
accretion
|
|
|
22,720
|
|
|
36,001
|
|
Payment of contingent
consideration recorded in earnings
|
|
|
-
|
|
|
(35,035)
|
|
Adjustments to
contingent consideration
|
|
|
30,367
|
|
|
(3)
|
|
Other
|
|
|
(3,943)
|
|
|
2,656
|
|
Net change in
operating assets and liabilities, net of acquisitions
|
|
|
12,534
|
|
|
(209,308)
|
|
Net cash provided by
operating activities
|
|
|
2,126,817
|
|
|
2,228,927
|
|
|
|
|
|
|
|
|
Cash flows from
investing activities:
|
|
|
|
|
|
|
|
Payments for
acquisitions, net of cash acquired
|
|
|
(676,793)
|
|
|
(2,120,878)
|
|
Capital expenditures
for property and equipment
|
|
|
(934,000)
|
|
|
(1,055,988)
|
|
Proceeds from disposal
of assets
|
|
|
31,581
|
|
|
7,903
|
|
Proceeds from sale of
investment in noncontrolling interests
|
|
|
-
|
|
|
37,000
|
|
Other
|
|
|
(1,867)
|
|
|
(27,213)
|
|
Net cash used in
investing activities
|
|
|
(1,581,079)
|
|
|
(3,159,176)
|
|
|
|
|
|
|
|
|
Cash flows from
financing activities:
|
|
|
|
|
|
|
|
Proceeds from
long-term debt
|
|
|
1,818,765
|
|
|
4,564,469
|
|
Principal payments on
notes payable and long-term debt
|
|
|
(2,052,153)
|
|
|
(3,245,419)
|
|
Payment of contingent
consideration recorded at acquisition date
|
|
|
(13,317)
|
|
|
(27,743)
|
|
Change in book
overdraft
|
|
|
(790)
|
|
|
(227)
|
|
Payments for
repurchase of common shares
|
|
|
-
|
|
|
-
|
|
Payments for cash
dividends
|
|
|
(270,604)
|
|
|
(302,258)
|
|
Tax withholdings
related to net share settlements of equity-based
compensation
|
|
|
(31,009)
|
|
|
(32,928)
|
|
Debt issuance
costs
|
|
|
-
|
|
|
(13,449)
|
|
Proceeds from issuance
of shares under employee share purchase plan
|
|
|
3,909
|
|
|
4,486
|
|
Proceeds from sale of
common shares held in trust
|
|
|
794
|
|
|
2,014
|
|
Other
|
|
|
-
|
|
|
(4,000)
|
|
Net cash provided by
(used in) financing activities
|
|
|
(544,405)
|
|
|
944,945
|
|
|
|
|
|
|
|
|
Effect of exchange rate
changes on cash, cash equivalents and restricted cash
|
|
|
1,341
|
|
|
(561)
|
|
|
|
|
|
|
|
|
Net increase in cash,
cash equivalents and restricted cash
|
|
|
2,674
|
|
|
14,135
|
|
Cash, cash equivalents
and restricted cash at beginning of year
|
|
|
181,364
|
|
|
184,038
|
|
Cash, cash equivalents
and restricted cash at end of year
|
|
$
|
184,038
|
|
$
|
198,173
|
ADDITIONAL STATISTICS
(in thousands of U.S. dollars, except where noted)
Solid Waste Internal Growth: The following table
reflects a breakdown of the components of our solid waste internal
growth for the three and twelve month periods ended December 31, 2024:
|
|
Three months
ended
December 31,
2024
|
|
Twelve months
ended
December 31,
2024
|
|
Core Price
|
|
|
6.7 %
|
|
|
7.1 %
|
|
Surcharges
|
|
|
(0.5 %)
|
|
|
(0.5 %)
|
|
Volume
|
|
|
(3.2 %)
|
|
|
(2.9 %)
|
|
Recycling
|
|
|
0.2 %
|
|
|
0.7 %
|
|
Foreign Exchange
Impact
|
|
|
(0.3 %)
|
|
|
(0.2 %)
|
|
Total
|
|
|
2.9 %
|
|
|
4.2 %
|
Revenue Breakdown: The following table reflects a breakdown of
our revenue for the three month periods ended December 31, 2023 and 2024:
|
|
Three months
ended December 31, 2023
|
|
|
|
Revenue
|
|
Inter-company
Elimination
|
|
Reported
Revenue
|
|
%
|
|
Solid Waste
Collection
|
|
$
|
1,501,882
|
|
$
|
(4,220)
|
|
$
|
1,497,662
|
|
73.6
|
%
|
|
Solid Waste Disposal
and Transfer
|
|
|
672,318
|
|
|
(279,231)
|
|
|
393,087
|
|
19.3
|
%
|
|
Solid Waste
Recycling
|
|
|
41,316
|
|
|
(1,462)
|
|
|
39,854
|
|
2.0
|
%
|
|
E&P Waste
Treatment, Recovery and Disposal
|
|
|
59,780
|
|
|
(3,677)
|
|
|
56,103
|
|
2.7
|
%
|
|
Intermodal and
Other
|
|
|
49,066
|
|
|
(163)
|
|
|
48,903
|
|
2.4
|
%
|
|
Total
|
|
$
|
2,324,362
|
|
$
|
(288,753)
|
|
$
|
2,035,609
|
|
100.0
|
%
|
|
|
|
|
|
|
Three months
ended December 31, 2024
|
|
|
|
Revenue
|
|
Inter-company
Elimination
|
|
Reported
Revenue
|
|
%
|
|
Solid Waste
Collection
|
|
$
|
1,612,307
|
|
$
|
(4,513)
|
|
$
|
1,607,794
|
|
71.1
|
%
|
|
Solid Waste Disposal
and Transfer
|
|
|
718,525
|
|
|
(309,508)
|
|
|
409,017
|
|
18.1
|
%
|
|
Solid Waste
Recycling
|
|
|
59,802
|
|
|
(2,102)
|
|
|
57,700
|
|
2.6
|
%
|
|
E&P Waste
Treatment, Recovery and Disposal
|
|
|
146,328
|
|
|
(6,074)
|
|
|
140,254
|
|
6.2
|
%
|
|
Intermodal and
Other
|
|
|
45,908
|
|
|
(390)
|
|
|
45,518
|
|
2.0
|
%
|
|
Total
|
|
$
|
2,582,870
|
|
$
|
(322,587)
|
|
$
|
2,260,283
|
|
100.0
|
%
|
Contribution from Acquisitions: The following table reflects
revenues from acquisitions, net of divestitures, for the three and
twelve month periods ended December 31,
2023 and 2024:
|
|
Three months
ended
December 31,
|
|
Twelve months
ended
December 31,
|
|
|
2023
|
|
2024
|
|
2023
|
|
2024
|
|
Acquisitions,
net
|
|
$
|
51,011
|
|
$
|
169,467
|
|
$
|
407,313
|
|
$
|
529,183
|
ADDITIONAL STATISTICS (continued)
(in thousands of U.S.
dollars, except where noted)
Other Cash Flow Items: The following table reflects cash
interest and cash taxes for the three and twelve month periods
ended December 31, 2023 and 2024:
|
|
Three months
ended
December 31,
|
|
Twelve months
ended
December 31,
|
|
|
2023
|
|
2024
|
|
2023
|
|
2024
|
|
Cash Interest
Paid
|
|
$
|
69,868
|
|
$
|
75,738
|
|
$
|
260,923
|
|
$
|
298,934
|
|
Cash Taxes
Paid
|
|
|
81,470
|
|
|
51,382
|
|
|
207,020
|
|
|
215,997
|
Debt to Book Capitalization as of December
31, 2024: 51%
Internalization for the three months ended
December 31, 2024: 58%
Days Sales Outstanding for the three months ended
December 31, 2024: 38 (22
net of deferred revenue)
Share Information for the three months ended December 31, 2024:
|
Basic shares
outstanding
|
|
258,043,117
|
|
Dilutive effect of
equity-based awards
|
|
799,634
|
|
Diluted shares
outstanding
|
|
258,842,751
|
NON-GAAP RECONCILIATION SCHEDULE
(in thousands of U.S.
dollars, except where noted)
Reconciliation of Adjusted EBITDA:
Adjusted EBITDA, a non-GAAP financial measure, is provided
supplementally because it is widely used by investors as a
performance and valuation measure in the solid waste
industry. Management uses adjusted EBITDA as one of the
principal measures to evaluate and monitor the ongoing financial
performance of Waste Connections' operations. Waste
Connections defines adjusted EBITDA as net income attributable to
Waste Connections, plus or minus net income (loss) attributable to
noncontrolling interests, plus income tax provision, plus interest
expense, less interest income, plus depreciation and amortization
expense, plus closure and post-closure accretion expense, plus or
minus any loss or gain on impairments and other operating items,
plus other expense, less other income. Waste Connections
further adjusts this calculation to exclude the effects of other
items management believes impact the ability to assess the
operating performance of its business. This measure is not a
substitute for, and should be used in conjunction with, GAAP
financial measures. Other companies may calculate adjusted
EBITDA differently.
|
|
Three months
ended
December 31,
|
|
Twelve months
ended
December 31,
|
|
|
2023
|
|
2024
|
|
2023
|
|
2024
|
|
Net income (loss)
attributable to Waste Connections
|
|
$
|
126,753
|
|
$
|
(196,004)
|
|
$
|
762,800
|
|
$
|
617,573
|
|
Plus/(Less): Net income
(loss) attributable to noncontrolling interests
|
|
|
(124)
|
|
|
-
|
|
|
26
|
|
|
(1,003)
|
|
Plus/(Less): Income tax
provision (benefit)
|
|
|
34,760
|
|
|
(85,645)
|
|
|
220,675
|
|
|
146,363
|
|
Plus: Interest
expense
|
|
|
69,728
|
|
|
82,419
|
|
|
274,642
|
|
|
326,804
|
|
Less: Interest
income
|
|
|
(2,464)
|
|
|
(2,215)
|
|
|
(9,350)
|
|
|
(11,607)
|
|
Plus: Depreciation and
amortization
|
|
|
253,124
|
|
|
321,793
|
|
|
1,003,211
|
|
|
1,163,769
|
|
Plus: Closure and
post-closure accretion
|
|
|
5,909
|
|
|
6,896
|
|
|
19,605
|
|
|
29,774
|
|
Plus: Impairments and
other operating items
|
|
|
169,595
|
|
|
601,570
|
|
|
238,796
|
|
|
613,012
|
|
Plus/(Less): Other
expense (income), net
|
|
|
(4,135)
|
|
|
2,256
|
|
|
(12,481)
|
|
|
(10,471)
|
|
Adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Plus:
Transaction-related expenses(a)
|
|
|
3,639
|
|
|
890
|
|
|
10,653
|
|
|
26,059
|
|
Plus/(Less): Fair
value changes to equity awards(b)
|
|
|
(1,791)
|
|
|
(11)
|
|
|
(1,726)
|
|
|
1,592
|
|
Plus: Executive
separation costs(c)
|
|
|
1,042
|
|
|
-
|
|
|
16,105
|
|
|
-
|
|
Adjusted
EBITDA
|
|
$
|
656,036
|
|
$
|
731,949
|
|
$
|
2,522,956
|
|
$
|
2,901,865
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As % of
revenues
|
|
|
32.2 %
|
|
|
32.4 %
|
|
|
31.5 %
|
|
|
32.5 %
|
|
____________________________
|
|
(a)
|
Reflects the addback of
acquisition-related transaction costs.
|
|
(b)
|
Reflects fair value
accounting changes associated with certain equity
awards.
|
|
(c)
|
Reflects the cash and
non-cash components of severance expense associated with an
executive departure.
|
NON-GAAP RECONCILIATION SCHEDULE (continued)
(in thousands
of U.S. dollars, except where noted)
Reconciliation of Adjusted Free Cash Flow:
Adjusted free cash flow, a non-GAAP financial measure, is
provided supplementally because it is widely used by investors as a
liquidity measure in the solid waste industry. Waste
Connections calculates adjusted free cash flow as net cash provided
by operating activities, plus or minus change in book overdraft,
plus proceeds from disposal of assets, less capital expenditures
for property and equipment. Waste Connections further adjusts
this calculation to exclude the effects of items management
believes impact the ability to evaluate the liquidity of its
business operations. This measure is not a substitute for,
and should be used in conjunction with, GAAP liquidity or financial
measures. Other companies may calculate adjusted free cash
flow differently.
|
|
|
Twelve months
ended
December 31,
|
|
|
|
2023
|
|
2024
|
|
Net cash provided by
operating activities
|
|
|
$
|
2,126,817
|
|
$
|
2,228,927
|
|
Less: Change in book
overdraft
|
|
|
|
(790)
|
|
|
(227)
|
|
Plus: Proceeds from
disposal of assets
|
|
|
|
31,581
|
|
|
7,903
|
|
Less: Capital
expenditures for property and equipment
|
|
|
|
(934,000)
|
|
|
(1,055,988)
|
|
Adjustments:
|
|
|
|
|
|
|
|
|
Payment of
contingent consideration recorded in
earnings(a)
|
|
|
|
-
|
|
|
35,035
|
|
Cash received for
divestitures(b)
|
|
|
|
(6,194)
|
|
|
-
|
|
Transaction-related
expenses(c)
|
|
|
|
5,519
|
|
|
11,408
|
|
Executive separation
costs (d)
|
|
|
|
1,686
|
|
|
1,670
|
|
Pre-existing
Progressive Waste share-based grants(e)
|
|
|
|
1,285
|
|
|
1,194
|
|
Tax
effect(f)
|
|
|
|
(1,772)
|
|
|
(12,396)
|
|
Adjusted free cash
flow
|
|
|
$
|
1,224,132
|
|
$
|
1,217,526
|
|
|
|
|
|
|
|
|
|
As % of
revenues
|
|
|
|
15.3 %
|
|
|
13.7 %
|
|
___________________________
|
|
(a)
|
Reflects the addback of
acquisition-related payments for contingent consideration that were
recorded as expenses in earnings and as a component of cash flows
from operating activities as the amounts paid exceeded the fair
value of the contingent consideration recorded at the acquisition
date.
|
|
(b)
|
Reflects the
elimination of cash received in conjunction with the divestiture of
certain operations.
|
|
(c)
|
Reflects the addback of
acquisition-related transaction costs.
|
|
(d)
|
Reflects the cash
component of severance expense associated with an executive
departure.
|
|
(e)
|
Reflects the cash
settlement of pre-existing Progressive Waste share-based awards
during the period.
|
|
(f)
|
The aggregate tax
effect of footnotes (a) through (e) is calculated based on the
applied tax rates for the respective periods.
|
NON-GAAP RECONCILIATION SCHEDULE (continued)
(in
thousands of U.S. dollars, except per share amounts)
Reconciliation of Adjusted Net Income attributable to Waste
Connections and Adjusted Net Income per Diluted Share attributable
to Waste Connections:
Adjusted net income attributable to Waste Connections and
adjusted net income per diluted share attributable to Waste
Connections, both non-GAAP financial measures, are provided
supplementally because they are widely used by investors as a
valuation measure in the solid waste industry. Management
uses adjusted net income attributable to Waste Connections and
adjusted net income per diluted share attributable to Waste
Connections as one of the principal measures to evaluate and
monitor the ongoing financial performance of Waste Connections'
operations. Waste Connections provides adjusted net income
attributable to Waste Connections to exclude the effects of items
management believes impact the comparability of operating results
between periods. Adjusted net income attributable to Waste
Connections has limitations due to the fact that it excludes items
that have an impact on the Company's financial condition and
results of operations. Adjusted net income attributable to
Waste Connections and adjusted net income per diluted share
attributable to Waste Connections are not a substitute for, and
should be used in conjunction with, GAAP financial measures.
Other companies may calculate these non-GAAP financial measures
differently.
|
|
Three months
ended
December 31,
|
|
Twelve months
ended
December 31,
|
|
|
2023
|
|
2024
|
|
2023
|
|
2024
|
|
Reported net income
(loss) attributable to Waste Connections
|
|
$
|
126,753
|
|
$
|
(196,004)
|
|
$
|
762,800
|
|
$
|
617,573
|
|
Adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Amortization of
intangibles(a)
|
|
|
39,833
|
|
|
60,184
|
|
|
157,573
|
|
|
189,768
|
|
Impairments and other
operating items(b)
|
|
|
169,595
|
|
|
601,570
|
|
|
238,796
|
|
|
613,012
|
|
Transaction-related
expenses(c)
|
|
|
3,639
|
|
|
890
|
|
|
10,653
|
|
|
26,059
|
|
Fair value changes to
equity awards(d)
|
|
|
(1,791)
|
|
|
(11)
|
|
|
(1,726)
|
|
|
1,592
|
|
Executive separation
costs(e)
|
|
|
1,042
|
|
|
-
|
|
|
16,105
|
|
|
-
|
|
Tax
effect(f)
|
|
|
(53,592)
|
|
|
(166,051)
|
|
|
(102,948)
|
|
|
(208,711)
|
|
Adjusted net income
attributable to Waste Connections
|
|
$
|
285,479
|
|
$
|
300,578
|
|
$
|
1,081,253
|
|
$
|
1,239,293
|
|
Diluted earnings per
common share attributable to Waste Connections' common
shareholders:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reported net income
(loss)
|
|
$
|
0.49
|
|
$
|
(0.76)
|
|
$
|
2.95
|
|
$
|
2.39
|
|
Adjusted net
income
|
|
$
|
1.11
|
|
$
|
1.16
|
|
$
|
4.19
|
|
$
|
4.79
|
|
Shares used in the per
share calculations:
|
|
|
Reported diluted
shares
|
|
|
258,303,370
|
|
|
258,043,117
|
|
|
258,149,244
|
|
|
258,662,190
|
|
Adjusted diluted
shares(g)
|
|
|
258,303,370
|
|
|
258,842,751
|
|
|
258,149,244
|
|
|
258,662,190
|
|
____________________________
|
|
(a)
|
Reflects the
elimination of the non-cash amortization of acquisition-related
intangible assets.
|
|
(b)
|
Reflects the addback of
impairments and other operating items.
|
|
(c)
|
Reflects the addback of
acquisition-related transaction costs.
|
|
(d)
|
Reflects fair value
accounting changes associated with certain equity
awards.
|
|
(e)
|
Reflects the cash and
non-cash components of severance expense associated with an
executive departure.
|
|
(f)
(g)
|
The aggregate tax
effect of the adjustments in footnotes (a) through (e) is
calculated based on the applied tax rates for the respective
periods.
Reflects reported
diluted shares adjusted for shares that were excluded from the
reported diluted shares calculation due to reporting a net loss
during the three months ended December 31, 2024.
|
|
2025
OUTLOOK
NON-GAAP
RECONCILIATION SCHEDULE
(in thousands of U.S.
dollars, except where noted)
|
|
|
Reconciliation of
Adjusted EBITDA:
|
|
2025 Outlook
|
|
|
Low
Estimate
|
|
|
High
Estimate
|
|
|
Observation
|
|
Net income attributable
to Waste Connections
|
$
|
1,186,000
|
|
$
|
1,224,000
|
|
|
|
|
Plus: Income tax provision
|
|
374,000
|
|
|
386,000
|
|
|
Approximate 24.0%
effective rate
|
|
Plus: Interest expense, net
|
|
290,000
|
|
|
310,000
|
|
|
|
|
Plus: Depreciation and Depletion
|
|
1,040,000
|
|
|
1,045,000
|
|
|
Approximately 10.9% -
11.0% of revenue
|
|
Plus: Amortization
|
|
185,000
|
|
|
190,000
|
|
|
Approximately 2.0% of
revenue
|
|
Plus: Closure and post-closure accretion
|
|
45,000
|
|
|
45,000
|
|
|
|
|
Adjusted
EBITDA
|
$
|
3,120,000
|
|
$
|
3,200,000
|
|
|
Approximately 33.0% -
33.3% of revenue
|
|
|
Reconciliation of
Adjusted Free Cash Flow:
|
|
|
|
|
2025 Outlook
|
|
|
Low
Estimate
|
|
|
High
Estimate
|
|
Net cash provided by
operating activities
|
$
|
2,500,000
|
|
$
|
2,575,000
|
|
Less: Capital expenditures
|
|
(1,200,000)
|
|
|
(1,225,000)
|
|
Adjusted Free Cash
Flow
|
$
|
1,300,000
|
|
$
|
1,350,000
|
View original content to download
multimedia:https://www.prnewswire.com/news-releases/waste-connections-reports-fourth-quarter-2024-results-and-provides-2025-outlook-302375322.html
SOURCE Waste Connections, Inc.
